A Huawei engineer displays parts in the research and development area of the Bantian campus in Shenzhen, China.
If China chooses to retaliate by restricting Chinese firms from serving U.S. customers or buying from American suppliers, then the intricate supply chain built over decades could break under the strain, forcing companies to scramble for alternatives. Chip manufacturers in the U.S. have provided an early window into the disruption caused by a ban on supplying Huawei, a company the Trump administration accuses of spying for the Chinese government. Out of the $70 billion that Huawei spent on components in 2018, $11 billion went to U.S. companies.
Finding viable manufacturers for consumer devices outside of the Chinese firms such companies rely on could take years. But they would at least have the option of passing rising costs down to customers to buoy their bottom lines as they reshape their supply chains. But that’s assuming that Apple still has smartphones to sell after being banned from China. The components for the company’s devices come from all over the world — gyroscopes from France, memory from Japan and Taiwan, Gorilla Glass for the touchscreens from Kentucky. But the vast majority are assembled in Foxconn’s factory complex in Shenzhen, China.Apple’s stock has dipped 13% this month in response to the rising trade tensions.
Google’s core business is advertising, with its search, email, content, artificial intelligence and operating system products all feeding back into the basic mission of amassing user data and using it to sell more effective ads to companies. So for years, Google has offered its Android operating system to smartphone manufacturers such as Huawei for free.
FreeFnF
Next will be consumer drone manufacturer DJI, world market leader. The thought they are collecting and sending data secretly to China is beyond ridiculous.
Wouldn’t you know the LAT will support China before supporting America in a better deal from China? LAT is like the democrats traitors!!!
Such a split would shake global markets, though consequences would be more severe for some companies than others. For example, losing access to the Chinese market entirely would cut Apple’s overall revenues by 20%.